Updated: July, 14th 2023
With the soaring costs of living in cities across the US, many homeowners increasingly feel like they’re house rich and cash poor. Back when they made that initial investment, they never imagined the unexpected financial challenges and everyday stress that owning a home can bring.
In 2023, many homeowners often find themselves at a crossroads. Should they grit their teeth hoping the housing market stabilizes? Are their expectations in owning a home matching up with the reality of ever-increasing interest rates? Do they simply put up with all the challenges that occur when you own a home like high mortgage payments and the costly cycle of home repairs? Or should they sell their family home, cash out of the equity they’ve earned, and move onward?
These are the kind of questions that keep our finance editors up at night. So, we scoured the internet for a solution. We were intrigued when we discovered something called the home sale-leaseback.
Just what is this sale-leaseback thing? A sale-leaseback blends two common transactions: a home sale and a lease. By selling your home and leasing it back, homeowners can get the full equity out of their homes without taking on debt or moving. It’s a win-win.
Here are 5 reasons why sale-leasebacks may be perfect for you:
1. Reduced Expenses/Taxes
Freeing up your assets with a home sale-leaseback arrangement can help you pay off that mortgage and even avoid taking on more debt. Stop paying for major repairs and maintenance, property insurance, and property taxes. Establishing a budget that covers a stable monthly lease payment and utilities allows for more financial flexibility and peace of mind.
2. Disposable income
People typically use their all-cash home equity proceeds from a home sale-leaseback to:
- Invest or diversify investments
- Pay off debt
- Plan for retirement investments or travel
- Buy or renovate another home
- Cover unexpected financial or healthcare costs
BONUS: "In general, if you are an individual who has owned and lived in your home for at least two out of the past five years, you do not have to pay federal income taxes on the first $250,000 of profit on your home sale. In general, married couples filing jointly, you do not have to pay federal income taxes on the first $500,000 of profit."
3. Flexibility/Less Stress
Yes, you can sell your home and keep living in it uninterrupted! Unlike a traditional sale, when you work with a sale-leaseback specialist, there’s no listing, showing, packing, moving, waiting, or worrying about the buyer’s mortgage approval. Purchase of your home can happen in as little as 30 days, and your lease starts immediately upon closing. If you're in the midst of moving to a new home or are finalizing renovations, you can utilize a sale-leaseback to stay put while your dream home is completed.
4. Build a financial legacy for your children
Providing for your family is essential, creating stability and opportunity for the next generation. It’s quite liberating to have access to disposable income that you can either put toward investments or that grants you the flexibility to move for the sake of your family's future.
5. Work With Trusted Experts
Sure, you can google it but why spend the time when expert sale-leaseback advisors are happy to talk you through the process. Working with a real estate expert will allow you to free up your home equity and plan for your financial future. Working with an experienced sale-leaseback company can allow you to protect your wealth against volatile home values and diversify your investments into income-generating assets such as stocks. More importantly, you have access to cash to use during the times you need it most.
After some extensive research, we identified Truehold as the absolute best sale-leaseback provider in the US. They are the best choice for homeowners who want to unlock their home equity, debt-free, without having to move. It’s comforting to know that they provide trustworthy financial and real estate alternatives for those who want to stay in their homes. Truehold buys your house and leases it right back to you - easy-peasy.
Thanks to Truehold’s fantastic sale-leaseback business model, you can let go of the financial stress of home ownership. You bought a home originally with the goal of enjoying it. With Trueholds's help, the focus can be on less worries and more money for whatever life has in store.